1. The value of intangible assets on the balance sheet

a. May be imprecise due to the treatment of R&D expense

b. Often have book values in excess of their market values

c. Are reported at the cost of acquisition

d. Represents a capitalization of R&D costs incurred to develop the asset

e. More than one of the above is CORRECT

2. If other assets are not tested for impairment prior to testing goodwill, which of the following is true?

a. The likelihood that goodwill will be judged to be in need of impairment will increase.

b. The likelihood that goodwill will be judged to be in need of impairment will decrease.

c. The amount of impairment loss applied to goodwill impairment will increase.

d. The amount of impairment loss applied to goodwill impairment will decrease.

e. There is no change to the likelihood or the amount of goodwill impairment.